I don't think it's quite THAT negative and complicated....if any authority ever asks him about it, all they are going to care about is that he has some sort of registration (assuming registration is required in his state...some do not).
I am not trying to be negative. I am trying to tell people that Parks and Wildlife, DMV, Tax Collector, etc are all paramilitary organizations. Meaning you can do the paperwork their way or do it over again. If you decide not to do the paperwork, they WILL find a way to make your life miserable.
I learned a lot about not registering "Race Boats" the expensive way. Most State Laws say something like used exclusively for racing in sanctioned events. Practicing doesn't count and sailing outside of the time limits on a sanctioned event is a no no. Also outside of major cities Sanctioning Officials can be odd. It could be the County Commissioner or they may not have one or it could be the guy you wrote you the ticket.
I have also learned the hard way that if you get a ticket and your paperwork is strange, pay the ticket rather than showing them your paperwork. AND to a State official, anything short of the paperwork a dealer gives you when you buy a new boat looks suspicious.